Westport, Connecticut Moves

head_left_image

Connecticut REALTORS® at the Capitol

Last Thursday (April 5, 2012,) approximately 600 REALTORS® descended on Hartford, CT for the annual REALTORS® at the Capitol day. The morning began with a general assembly session at the Bushnell auditorium, where CAR (Connecticut Association of REALTORS®) leaders presented the issues concerning some of the current proposed legislation and how it impacts the real estate market for agents, home buyers and sellers.

The gathering then moved across the street to the REALTORS® at the Capitol Legislation Office Building, where REALTORS® broke into smaller groups to meet with the State Senators and House Representatives that represent their specific regions. During the Q&A session that I attended, one of the legislators went a bit off topic and pronounced how burdensome the Federal Health Care Bill is, because it will tax sellers 3.8% on the sale of their homes, to fund the bill.

That blanket statement was immediately corrected by some of the CT Legislators at REALTORS® at the Capitol attendees. However, it was troubling to realize that if an elected official had not made the effort to find out the details of the tax, how much more of the public was also misinformed. Therefore, although the mistatement has been debunked many times before, I thought it was worth clarifying the details of the tax provision, one more time.

Beginning in 2013, the 3.8% tax will apply to singles earning $200,000+ and married couples earning $250,000+.  The tax is only on the profit, above $250,000 (singles) and $500,000 (married.)  Therefore, the vast majority of home sellers are not affected by the  tax, and that includes high income individuals. 

For example, a married couple earning $800,000 (certainly high income and in the “subject to” category) sells their primary residence for $2 million. The profit on the sale of the home is $400,000. Amount subject to 3.8% tax = 0  

Assuming their profit was $550,000, they would be allowed a $500,000 exclusion and would have to pay 3.8% on $50,000 or $1,900.

 

 

Marilyn Katz

      Marilyn Katz

    Berkshire Hathaway Homes Services New England Properties    
     203-429-1041
  Servings Westport, CT
  and the surrounding communities  

Click to subscribe to my AR Blog 

  
 Search Like an Agent

Copyright © 2013 Marilyn Katz, All Rights Reserved

Comment balloon 2 commentsMarilyn Katz • April 10 2012 01:03PM

Comments

Marilyn, I didn't make the even this year but it is usually quite informative and well attended.

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) over 6 years ago

Ed - Unfortunately, the Bushnell cancelled this year's original date and the Thursday before the Passover/Easter weekend was the only thing available. In addition to REALTOR attendance being down, a lot of legislators weren't there.

Posted by Marilyn Katz, ABR, e-PRO - WestportCTProperties.com (Berkshire Hathaway HomeServices New England Properties) over 6 years ago

Participate